Q&A Hero

Q: Typically, at the beginning of the maturity stage of the product life cycle, sales: a. become flat and do not change b. increase at an increasing rate c. decrease at a decreasing rate d. decrease at an increasing rate e. increase at a decreasing rate

Q: During the growth stage of the product life cycle: a. there is little emphasis on the distribution strategy b. demand for the product is limited to high-income consumers c. prices increase due to economies of scale d. there is decreased direct competition e. profits peak

Q: The advertising strategy during the growth stage of the product life cycle should be to: a. aim at the needs of innovators b. make the mass market aware of brand benefits c. use advertising as a vehicle for introducing the product category benefits d. emphasize the product's low price to help reduce inventories e. make the market aware of product category brands

Q: The phase of the product life cycle in which healthy profits usually begin to appear is the _____ stage. a. growth b. decline c. introductory d. maturity e. commercialization

Q: The length of the introductory stage of the product life cycle for a new product is largely determined by: a. the size of the product b. the product's marketing mix c. the efficiency of the test marketing d. product characteristics, such as advantages over substitute products e. the size of the market

Q: A brand of iced tea, called Gold Peak, has high marketing costs as well as high production costs. Promotions for the product are aimed at gaining distribution and informing consumers that this premium product tastes like it's home-brewed. In which stage of the product life cycle is Gold Peak iced tea? a. introductory b. growth c. maturity d. decline e. saturation

Q: Patio furniture, lighting fixtures, microwave ovens, canned corn, and athletic shoes are examples of: a. PLC line items b. line-extendable categories c. brand classes d. brand groupings e. product categories

Q: All the brands that satisfy a particular type of need such as shaving products, laundry detergent, soft drinks, and furniture make up a(n): a. product life cycle stage b. primary group c. adopter category d. product category e. reference group

Q: What can the marketers of consumer products expect to find when they study and apply the product life cycle theory to their products? a. All products go through every stage of the life cycle. b. Changes in a product can change its life cycle. c. The amount of time products stay in each stage is standardized for consumer products, but not industrial products. d. All products except those considered faddish go through every stage. e. The theory helps to predict how long a firm will stay in each stage.

Q: The stages of the product life cycle, in order, are: a. introduction, maturity, decline b. introduction, growth, maturity, decline c. growth, maturity, plateau, decline d. innovation, early adoption, late adoption, laggard e. category acceptance, category growth, brand acceptance, brand growth

Q: A biological metaphor that traces the stages of a product's acceptance, from its introduction (birth) to its decline (death) is called the: a. product diffusion process b. product phase c. product adoption stages d. product evolution cycle e. product life cycle

Q: When Coca-Cola North American debuted Gold Peak iced tea, a spokesperson for the company said, "In looking at the ready-to-drink tea market, we found that the one place that nobody seemed to be playing was in the category of classic iced teas like mother used to make. Gold Peak is a quality product that brings back that classic taste. We're going to do a lot of sampling with this product because we believe that if people try it, they're going to love it and stick with it." In other words, its adoption rate will rely on its: a. compatibility b. comparability c. complexity d. trialability e. competitive advantage

Q: Which of the following products has the lowest level of trialability? a. an Internet chat room b. low-fat ice cream c. surgically implanted hearing aids d. organic pet food e. a new air freshener

Q: The degree to which a product can be used on a limited basis represents which product characteristic influencing the rate of adoption? a. complexity b. trialability c. observability d. relative advantage e. sampling

Q: A new medication to eliminate fungal growths on people's toenails may have a slow rate of adoption because it is not a highly visible item in homes. Also, this item is not often discussed among friends and coworkers. This is an example of how the characteristic of _____ can work to slow the adoption process. a. relative advantage b. observability c. trialability d. complexity e. compatibility

Q: Razor scooters gained instant popularity because walkers and runners frequently saw people on the scooters zipping by them and having fun. This information suggests the adoption rate of the Razor scooter was most affected by which product characteristic? a. complexity b. trialability c. relative advantage d. observability e. compatibility

Q: Which product characteristic affecting the rate of adoption of a new product represents the degree to which the benefits or other results of using the product can be communicated to target customers? a. observability b. diffusion c. adoption d. trialability e. complexity

Q: Biopure Corp. is developing a human blood substitute called Hemopure. Unlike like donated human blood that needs to be refrigerated and expires after a short period of time, Hemopure is shelf-stable and can be stored for two years or more. It does not need to be matched to a person's blood type like donated blood does. These factors make it well-suited for trauma cases where blood must be transfused at an accident site or on the battlefield. Which product characteristic influencing the rate of adoption does this represent? a. complexity b. compatibility c. relative advantage d. observability e. trialability

Q: The product characteristic affecting the rate of adoption characterized by the degree to which a product is perceived as superior to existing substitutes is: a. compatibility b. complexity c. relative advantage d. product differentiation e. competitive advantage

Q: Many product failures such as Cucumber antiperspirant spray, Toaster Eggs, and Health-Sea sea-sausages most likely did not succeed because they did not conform to the product characteristic of: a. complexity b. trialability c. total advantage d. observability e. compatibility

Q: When the Segway Human Transporter was introduced in 2002, many people expected the product to be a phenomenal success. While the Segway is still on the market it has never been the success so many expected. A recent Wall Street Journal article suggested that the Segway, while brilliant technologically, seemed impractical to most people as it could not be used to replace their current method of transportation. In other words, the Segway had problems with _____. a. compatibility b. relative advantage c. observability d. trialability e. longevity

Q: A European dairy, which is famous for its rich ice creams, has introduced basil, tomato, fennel, and oregano flavored ice creams. Which of the following product characteristics would most likely influence the market success of these new flavors? a. compatibility b. comparability c. complexity d. tangibility e. competitive advantage

Q: Which product characteristic affecting the rate of adoption represents the degree to which the new product is consistent with existing values and product knowledge, past experiences, and current needs? a. complexity b. compatibility c. relative advantage d. observability e. trialability

Q: Oakley, the manufacturer of protective eyewear for sports enthusiasts, has recently introduced Oakley's Thump, UV sunglasses that allow the wearer to store and listen to 120 different songs. Which of the following product characteristics would likely exert the greatest influence on the market success of these new glasses? a. compatibility b. comparability c. complexity d. tangibility e. competitive advantage

Q: Which product factor influencing the rate of adoption represents the degree of difficulty involved in understanding and using a new product? a. complexity b. compatibility c. relative advantage d. observability e. trialability

Q: All of the following are product characteristics influencing the rate of adoption EXCEPT: a. complexity b. compatibility c. relative advantage d. observability e. distribution

Q: Which is the last adopter category to adopt an innovation? a. late majority b. laggards c. late diffusers d. reluctant adopters e. traditionalists

Q: In the adopter categories, the final 16 percent to adopt are similar to innovators in that they do not rely on the norms of the group but are independent because they are tradition-bound. They tend to have the lowest socioeconomic status, are suspicious of new products, and are alienated from a rapidly advancing society. They are called: a. generics b. late majority c. decliners d. laggards e. late diffusers

Q: Among the late majority group, adoption of a product primarily results from: a. word-of-mouth communications b. print advertising c. advertising in nontraditional media d. broadcast advertising e. sales promotions

Q: Leon is not very quick to purchase innovative products when they come out, but after a while he breaks down and buys if after most of his friends have bought it. He gets most of his information from them when he decides to buy something. He is very skeptical of marketing, so he trusts his friends more than anything. Leon is best described as a(n): a. innovator b. early adopter c. early majority d. late majority e. laggard

Q: Which category of adopters adopt a new product because most of their friends have already adopted it? a. innovators b. early majority c. early adopters d. laggards e. late majority

Q: Liz tends to adopt new products sooner than a lot of other people, but she weighs the pros and cons before buying. She does considerable product research, but her friends don"t really look to her for information. She really deliberates before she makes a purchase. Liz is best described as a(n): a. innovator b. early adopter c. early majority d. late majority e. laggard

Q: The _____ adopt a product because most of their friends have already done so, and their adoption is usually the result of pressure to conform because they rely on group norms.a. laggardsb. early adoptersc. early majorityd. innovatorse. late majority

Q: A company has learned members of its target market are likely to collect more information and evaluate more brands than early adopters. They are cautious and thoughtful and do not try the product without asking someone else. The customers' dominant characteristic is deliberateness. In terms of the diffusion process, these customers are most likely: a. innovators b. early minority c. laggards d. early majority e. late majority

Q: Jim didn"t buy a netbook computer when they first came out, but he did purchase one a year after they were introduced into the market. He is very active in his church and local arts council, and many of his friends asked him which brand to buy when they were considering purchasing a netbook. Jim is best described as a(n): a. innovator b. early adopter c. early majority d. leading consumer e. proactive

Q: _____ embrace products relatively early in the product life cycle, are likely to be community oriented, and often are opinion leaders themselves. a. Early adopters b. Innovators c. Early majority d. Late majority e. Laggards

Q: Mitch purchased a 32-inch high-definition television right after they were introduced in the marketplace and paid over $8,000 for it. He has a master's degree in business and is well-informed about electronic products. He is venturesome and is always looking for new products to try. Mitch is best described as a(n): a. early adopter b. early majority c. innovator d. diffusers e. lead consumer

Q: _____ are eager to try new ideas and products. They typically have higher incomes, are better educated, and are more cosmopolitan than other categories of adopters. a. Early adopters b. Innovators c. Early majority d. Late majority e. Laggards

Q: All of the following are categories of adopters in the diffusion process of innovations EXCEPT: a. laggards b. innovators c. early majority d. early adopters e. doubters

Q: All of the following statements about how adopters participate in the diffusion process are true EXCEPT: a. Early adopters may also be opinion leaders. b. Laggards are the last consumers to adopt a new product. c. There are three categories of consumers who will adopt an innovation. d. The dominant characteristic of members of the late majority is skepticism. e. Innovators are the first to purchase a new product.

Q: The process by which the adoption of 3-D high-definition televisions spreads is an example of: a. test market b. diffusion c. product dissemination d. innovative dispersal e. marketing communication

Q: The process by which the adoption of an innovation spreads is referred to as: a. diffusion b. circulation c. transmission d. dissemination e. dispersion

Q: A(n) _____ is a consumer who was happy enough with his or her trial experience with a product to use it again. a. laggard b. adopter c. innovator d. diffuser e. opt-in buyer

Q: Because Laurence did not know companies actually sold pet insurance so that owners could pay for operations on their pets in the event of a sickness or accident, he paid almost $4,000 to have his dog's broken hip replaced. Once he discovered such a product existed, he perceived the insurance to be a(n): a. heterogeneous shopping product b. diffusion c. market laggard d. product diversification e. innovation

Q: A product that is perceived as new by a potential adopter, whether the product is "new to the world" or simply new to the individual, is a(n): a. innovation b. diffusion c. discontinuous product d. laggard e. simulated new product

Q: The main goal of the global product development process is to: a. come up with a single standard product or product line suitable for all global markets b. expand the number of different new-product offerings so that individual country needs are more likely to be met c. develop every product for potential worldwide distribution and adaptation to other countries d. come up with new-product ideas in the United States and use global markets as test markets e. repeat the steps in the process with marketing teams in each and every foreign country targeted

Q: Firms that routinely experience success in new-product introduction tend to have:a. strong leadershipb. a history of a sales orientationc. an obsession with quantity rather than qualityd. an unwillingness to faile. all of the choices

Q: What degree of product failure results when the product returns a profit but fails to achieve sales, profit, or market share goals? a. primary b. secondary c. absolute d. conditional e. relative

Q: What degree of failure occurs when a company cannot recoup its development, marketing, and production costs? a. primary b. secondary c. absolute d. conditional e. relative

Q: All of the following are reasons products fail EXCEPT: a. overestimation of market size b. poor match between product features and customer desires c. a price too high or too low d. direct distribution e. not offering any discernible benefit compared to existing products

Q: During the _____ stage of the new-product development process, production starts, inventories are built up, the product is shipped to distribution points, the sales force is trained, and advertising and promotion begin. a. commercialization b. product testing c. market analysis d. product prototyping e. simulated marketing

Q: The final stage in the new-product development process is: a. product testing b. market testing c. commercialization d. product prototyping e. simulated marketing

Q: Which of the following has been found to be an efficient substitute for traditional methods of conducting test markets? a. product sampling b. simulated product adoption c. online test marketing d. simulated diffusion e. market concentration

Q: The maker of Purell hand sanitizer tested consumers' reactions to its Purell Sanitizing Wipes by getting consumers to look through a newspaper with grocery store ads, make out a grocery list, and then "shop" in a mock store filled with real products, including the new product. This is an example of a(n): a. adoption-rate test b. simulated (laboratory) market test c. concept test d. use test e. juried consumer test

Q: Apple is known for its Macintosh, iPod, and iPhone products. Apple recently added the iPad product to its list of products. The addition of the iPad was an example of a product line extension for the company.

Q: Chef's Catalog built its reputation on selling the highest-quality baking ingredients. The catalog retailer has added a line of fine kitchen tools and wants its customers to think of the retailer as a place to buy everything needed to bake the finest breads and desserts--not just for buying the ingredients. The marketing term for changing consumers' perceptions of the Chef's Catalog is segmentation.

Q: Product modification occurs when changes are made in how the product functions, its quality, or some aesthetic characteristic of the product.

Q: Coca-Cola is one of the world's largest manufacturers of beverages. It makes over 2,800 different beverage products, including sparkling drinks, waters, juices, juice drinks, teas, coffees, sports drinks, and energy drinks. The great variety of beverages made by Coca-Cola represents its product mix.

Q: Often hotels will offer deep discounts on weekends and during the off-season; for the same reason, airlines will adopt a similar pricing strategy during off-peak hours. These services cannot be stored, warehoused, or inventoried because they are perishable.

Q: Heterogeneity of services means the quality of a service may not be consistent.

Q: Greta, the owner of House Mouse Cleaning Services, must be physically present when she cleans a house or office. The need for her presence as the service is performed is an example of the intangibility of services.

Q: Services are considered inseparable because most services cannot be felt or touched in the same way most goods can be sensed.

Q: Services tend to exhibit more search qualities than do tangible goods.

Q: Insurance companies are examples of service organizations.

Q: Even though the growth of the service sector worldwide has been sluggish in the past decade, the service sector now accounts for approximately one-fourth of the gross domestic product in the United States.

Q: A product unknown to the potential buyers, or a known-product that the buyers does not actively seek is referred to as an undesirable product.

Q: Rolex watches are very expensive, can only be purchased in high-end jewelry stores located in large metropolitan areas, and most buyers will accept no substitutes. Roles watches are an example of a shopping product.

Q: Inez believes makeup is the most important part of her wardrobe. She spends considerable time comparing the prices, skin tones, and color options available at various cosmetics counters in department stores. For Inez, makeup is a convenience product.

Q: Given the many differences in majors available, living options, and image differences, universities would be classified as a heterogeneous shopping product for most people.

Q: Convenience products, though inexpensive, still require considerable shopping effort by buyers.

Q: An elementary school teacher purchased a ream of art paper, a box of crayons, and some modeling clay. The teacher intends to use these products in her classroom, so they would be classified as business products.

Q: A product may be defined as everything, both favorable and unfavorable, that a person receives in an exchange.

Q: You are the U.S. brand manager of the Fluffit family of products. The products include a wide variety of synthetic and natural stuffing materials for furniture cushions, sleeping bags, quilts, and winter coats. The brand is a favorite among home repair enthusiasts and hobbyists of various kinds. Your firm would like to enter several foreign markets. Name and describe the three major alternative brand name choices for this global strategy. Discuss the viability of each alternative for Fluffit.

Q: Name and describe the two labeling forms.

Q: Packaging is an important component of the product strategy. List and briefly describe the four major functions of packaging.

Q: Define cobranding and describe the three different types of cobranding.

Q: What purposes does branding serve?

Q: Explain the differences among the terms brand, brand name, brand mark, trademark, and service mark.

Q: Compare and contrast the three types of product modifications and give an example of how each could be implemented.

Q: Smith-Binney's Crayola makes various products, all targeted toward elementary school children. Drawing, painting, and supply items are sold at convenience stores, toy stores, and grocery stores. Clothing is sold in department stores. Crayola might arrange its product items in the following way: Drawing/Painting Supplies Textiles Crayons, regular wax Crayon sharpeners Boys' clothing Crayons, fluorescent Paint brushes Girls' clothing Markers, regular Scissors Bed and bath linens Markers, washable Glue Watercolor paints Storage cases Acrylic paints Chalk What is the product mix width for Crayola? What is its product line depth?